Accounting Formulas and Calculations: Income Statement and Balance Sheet Equations

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Finance - Personal Finance

charlotte1oxhi Created by 10 mon ago

Cards in this deck(43)

Calculate Net Income using the formula: Revenues - Expenses = _____

Determine Ending Retained Earnings using: Beginning RE + Net Income - Dividends = _____

Assets are calculated by the formula: Liabilities + Stockholders Equity = _____

Calculate Interest Expense using: Principal x months/12 x interest rate = _____

Determine Net Purchases using: Purchase price + Shipping - Purchase returns and allowances - purchase discounts = _____

Calculate Net Sales using: sales revenue - sales returns and allowances - sales discounts = _____

Identify the correct order in a Multi-Step Income Statement: 1) Net Sales 2) Gross Profit 3) Income From Operations 4) Income Before Taxes 5) _____

Calculate Gross Profit using: Net Sales - COGS = _____

Determine Income From Operations using: gross profit - operating expenses = _____

Calculate income before income taxes using: Income from operations & Nonoperating Activities +/- Interest and other Revenues/Expenses +/- Gains/Losses = _____

Determine Net Income (Multi-Step) using: Income before Income Taxes - Income Tax Expense = _____

Use the Periodic Formula: beginning inventory + net purchases = goods available for sale; goods available for sale - ending inventory = _____

Calculate Interest Revenue (Months) using: Principal x months/12 x Interest Rate = _____

Determine Interest Revenue (Days) using: Principal x days/360 x Interest Rate = _____

Calculate Double Declining Balance using: 2/useful life x Book Value = _____

Determine Book Value using: cost - accumulated depreciation = _____

Calculate Amortization Expense using: Cost of Patent or Copyright / Shorter estimate of life = _____

Determine Sales Revenue using: Total proceeds / 1 + Sales Tax Rate = _____

Calculate Interest Payment using: Interest rate * Principal Balance = _____

Determine Principal Payment using: Interest Payment - Total Cash = _____

Calculate Principal Balance using: previous principal balance - principal payment = _____

Determine Bank's True Cash using: unadjusted balance + deposits in transit - outstanding checks = _____

Calculate Company's True Cash using: unadjusted balance + receivables collections + interest earned - NSF checks - service charges = _____

Determine Return on Assets using: net income/average total assets = _____

Calculate Gross Profit Rate using: gross profit/net sales = _____

Determine Profit Margin Rate using: net income/net sales = _____

Calculate Current Ratio using: Current Assets/Current Liabilities = _____

Determine Debts to Assets using: total liabilities/total assets = _____

Calculate Inventory Turnover Ratio using: COGS/Average Inventory = _____

Determine Days in Inventory using: (365 x Ending Inventory)/COGS = _____

Calculate Accounts Receivable Turnover using: Net Credit Sales / Average Net Accounts Receivable = _____

Determine Asset Turnover using: net sales/average total assets = _____

Calculate Earnings per Share using: net income - preferred dividends / average common outstanding shares = _____

What kind of ratio is Return on Assets? It is a _____ ratio.

How is turnover measured in relation to purchase and principal? It is measured by the integration of turnover with _____, considering factors related to principal.

When should you use what in relation to income and ratio? You should use it when the integration of what with _____, considering factors related to ratio.

What kind of ratio is Current Ratio? It is a _____ ratio.

What kind of ratio is debt to assets? It is a _____ ratio.

What kind of ratio is Inventory Turnover? It is an _____ ratio.

What is the definition of purchase in relation to principal and gross? The definition is the integration of purchase with _____, considering factors related to gross.

What are the characteristics of income in relation to ratio and profit? The key characteristics include the integration of income with _____, considering factors related to profit.

What is the significance of interest in relation to rate and total? The significance lies in the integration of interest with _____, considering factors related to total.

How does sales relate to inventory and revenue? It works by the integration of sales with _____, considering factors related to revenue.

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Accounting Formulas and Calculations: Income Statement and Balance Sheet Equations

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